All of the following are extensions of coverage under the building and personal property coverage form EXCEPT A) newly acquired or constructed property. B) valuable papers and records. C) personal property temporarily off the premises. D) currency and securities. ANSWER Answer: D
Date: September 19th, 2020
A security with a beta of one has a required rate of return equal to the overall market rate of return. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
One of the additional coverages under the building and personal property coverage form is “increased cost of construction.” The coverage is payable if A) a skilled artisan is needed to duplicate the construction of the damaged property. B) a labor strike or materials shortage increases construction costs. C) an ordinance or building code increases the […]
Date: September 19th, 2020
An understanding of how the company’s cost of capital is determined is one of the fundamental concepts that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. […]
Date: September 19th, 2020
________ is measured by the proportional amount of debt in the firm’s capital structure. A) Relative risk B) Business risk C) Operating risk D) Financial risk ANSWER D
Date: September 19th, 2020
Under the ISO program, a mobile home can be insured by A) adding the appropriate endorsement to the ISO personal auto insurance policy. B) using an ISO floater policy. C) adding the appropriate endorsement to an ISO Homeowner 2 or Homeowners 3 form. D) using an ISO inland marine form. ANSWER Answer: C
Date: September 19th, 2020
Private placements are A) available for both debt and equity securities, but the market is dominated by equity issues. B) limited to equity securities. C) especially appealing to new, small, and medium-sized companies. D) limited to debt securities. ANSWER C
Date: September 19th, 2020
________ and operating risk are one in the same and are reflected in the projected variability of the earnings of the firm regardless of how the firm is financed. A) Business risk B) Financial risk C) Exchange rate risk D) Risk of equity ANSWER A
Date: September 19th, 2020
Company unique risk can be virtually eliminated with a portfolio consisting of approximately 20 securities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A limited partnership provides limited liability to A) only to limited partners who do not participate in the management of the business. B) all partners. C) only limited partners responsible for day to day management of the firm. D) all general partners. ANSWER A
Date: September 19th, 2020
